Five Signs It’s a Scam! MoneyGram Spotlights Fraud Education

Awareness Campaign Part of National Consumer Protection Week

March 07, 2014 11:00 AM Eastern Standard Time

DALLAS--(BUSINESS WIRE)--It’s the phone call from a stranger who claims your relative is in
trouble and needs cash or an email that says you’ve won a prize for a
contest you never entered. These are tell-tale signs you’re being
scammed. As part of National Consumer Protection Week, MoneyGram
(NASDAQ: MGI), a leading global money transfer and payment services
company, is educating consumers on how to spot fraud.

According to the Federal Trade Commission, Americans lost an estimated
$1.6 billion dollars in fraud related crimes in 2013. To help consumers
keep their hard earned money out of the hands of fraudsters, MoneyGram
is warning them to watch out for these five signs they are being
targeted by scam artists.

You Hit the Jackpot!

You receive an email or phone call stating you won a prize but you must
pay fees before receiving it. This is the Sweepstakes Scam. No
legitimate sweepstakes will ask for money up front. You should never
send money to receive money!

The IRS is Looking for You

You get a phone call claiming you owe “back taxes” and will be arrested
if you don’t transfer money fast. This is a scam. Remember, the IRS
typically contacts people by mail, not by phone. The agency will never
ask for payments via a wire transfer or ask for a credit card number
over the phone.

Your Relative is in Trouble

You get a phone call from a person claiming to be a friend or family
member in trouble who needs cash quickly. This is the “person in need
scam” also referred to as the “grandparent scam.” Don’t send the money
unless you can verify with your friend or family member that the story
is true.

Get Paid to Shop

You’re offered a job to be a mystery shopper. Your “boss” sends you a
check to cover the cost of the items you’ll buy at the store you are
evaluating. When you get the check the money is for more than it should
be. The fraudster will ask you to wire the extra back to him. The check
turns out to be a fake and once you’ve sent the money, there’s no way to
recover the funds.

Act Now! You Won’t Find a Better Deal Than
This!

You’re shopping and find an ad for something you want at an incredible
price. The culprits pulling this scam will usually ask you to pay
quickly with a money transfer. You may even get a confirmation letter or
receipt. But, the reality is this is an Internet purchase scam and the
item you bought probably doesn’t exist.

“These are all tactics used in common scams that bilk millions of
Americans out of money each year,” says Kim Garner, SVP global security
at MoneyGram. “Wiring money is like sending cash, once you send it you
cannot get it back, that’s why we tell consumers to never send money to
someone they don’t know.”

Consumers should also follow the three Rs – recognize, react, and report.

Recognize: Savvy consumers should look for red flags when
someone asks them to send money through a wire service or money order,
because scammers often request these methods knowing that once the
money is sent, it cannot be retrieved.

React: When a consumer identifies a scam, they should
immediately put an end to any transaction or conversation – hang up
the phone, delete the email, or end the back-and-forth messaging.

Consumers should call 1-800-MONEYGRAM (800-666-3947) if they believe
MoneyGram was used to wire money as a result of a scam. Since mid-2010,
MoneyGram has helped prevent hundreds of millions of dollars in
suspected fraud activity globally, put those dollars back in the pockets
of consumers, and kept the funds out of the hands of scammers. Consumers
can learn more about protecting themselves against fraud at www.moneygram-preventfraud.com.

About MoneyGram International

MoneyGram International, a leading money transfer company, enables
consumers who are not fully served by traditional financial institutions
to meet their financial needs. MoneyGram offers money transfer services
worldwide through a global network of 336,000 agent locations –
including retailers, international post offices and financial
institutions – in more than 200 countries and territories. MoneyGram
also offers bill payment services in the U.S. and Canada. To learn more
about money transfer or bill payment at an agent location or online,
please visit moneygram.com or connect with us on Facebook.